Good? … Better?… Best? Parts? What?
It is all about offering your customers a choice.
Using this process by offering good, better best may be the difference in making a sale or not.
One day I had a regular customer come in and had me look at his 8-year-old Honda that wouldn’t start.
We diagnosed it as a faulty starter, reviewing his vehicles lengthy service records to verify we had never replaced the starter it in the 181,000 miles he had driven.
As always before speaking with him I checked pricing & availability with our parts department. Part is in stock, great!
Then I saw the price of the starter with the dealerships matrix pricing. Wow – that is not how I wanted to “WoW’ him today.
The OEM starter was over four times the price of an aftermarket starter that had a lifetime warranty on the part ‘VS’ the 90-day warranty on the OEM part.
I put myself in my customers’ shoes (which I strongly suggest you do) and said if I had a ten-year-old car with the amount of miles he had, would I want to invest almost 4 figures to have a starter replaced. Probably not.
Comparative parts pricing is always favorable because “it can change the behavior of consumers in very fundamental ways. and help retain your customer by offering a reasonable price for the year and condition of his vehicle.”
At the higher pricing consumers may decide not to buy at all. They may become skeptical & perceive your estimate as a heightened risk instead of following the advice the advisor had in mind causing your shop to lose a sale to a competitor.
That would be the worst thing that could happen as when they go to the competitor, statistics say they will probably more than likely return to your competitors again, and again. You can not afford to lose any customers!
If your sick of losing sales to competitors due to pricing issues, I would strongly suggest you think about offering the options of Good Better & Best in your service department.
Basic breakdown of choices offered:
- GOOD part may be a used part that has a 30-day warranty on it,
- BETTER part may be an aftermarket priced less than the factory part
- The best part would be the OEM factory replacement part.
At first, this was unheard of in our industry.
Today I can’t even fathom how many hundreds of thousands of dollars throughout the years that dealerships across America lose by offering only factory replacement parts and not other options.
Even more important with the length of time that people are retaining their vehicles, the reliability and durability of today’s engines, this is a vital part of your service departments profitable continuance –
Offering a full shop with options for your customers allows you to remember & deter them from visiting your competitors’ facility & a most likely losing them forever!
And believe me, it’s a lot less expensive to retain a customer than to gain a new customer
Todays World is a consumer choice world & you need to be sure you offer them just that….A CHOICE.
Consumers are offered so many goods, better best choices each day in our face paced world.
Think about it….What type of fuel do you purchase? Regular or mid or high test?
How about when in the grocery store….do you purchase the store brand or the original brand. Why is it price or flavor?
Make sure when they are deciding their Choice, it is Your Shop.
So buckle up and let’s go for a ride!
To your success ~ Ace
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PS: (I knew you would read this as research reveals that over 70% of the people will read the postscript ) But, with that said are you offering good, better, best to your customers? If not you are leaving money on the table. Think about oil changes which offer conventional, high mileage and synthetic. Offering oil changes in this manner can make you a profit instead of being a loss leader.